The continuing criticism of the SEC misses the point. Read DG2000's post and the associated documentation carefully. It was not the SEC's idea to introduce this rule. The impetus came from the NYSE and NASD, which are to a large extent self-regulating. The SEC essentially ruber-stamped their request for rule-making.
If the powers that be in the securities industry do not want day-trading accounts with less than $25k in them, who are the SEC to tell them that they must allow such accounts? The SEC's role in overseeing these self-regulating organizations is to ensure that they are not structuring the rules to allow the industry to rip-off the investors. In no way can this rule be seen as trying to do this. Therefore, the SEC would be hard put to disallow it.
Rightly of wrongly, the NYSE and NASD see the proliferation of day-trading in small accounts as posing a risk to their members that they do not want to accept. Read their documentation. That is the reason they give for asking for the rule-making.
Therefore, if you want the rule overturned, you have to convince the securities industry that they are wrong and that it is in their best interest to have it scrapped.
It is not much different from the insurance industry deciding there are certain types of risk that they don't want to accept and declining to insure it.
The chances of the industry asking for the rule to be overturned just after it goes into effect as a result of their request are somewhere between zero and none. So deal with it, get on with your life and stop asking government to intervene in every aspect of society that is not to the liking of your particular special interest group. If governments were less prone to respond to the bawling and handwringing of every group that comes down the pike, the world would be a much better place.
If the powers that be in the securities industry do not want day-trading accounts with less than $25k in them, who are the SEC to tell them that they must allow such accounts? The SEC's role in overseeing these self-regulating organizations is to ensure that they are not structuring the rules to allow the industry to rip-off the investors. In no way can this rule be seen as trying to do this. Therefore, the SEC would be hard put to disallow it.
Rightly of wrongly, the NYSE and NASD see the proliferation of day-trading in small accounts as posing a risk to their members that they do not want to accept. Read their documentation. That is the reason they give for asking for the rule-making.
Therefore, if you want the rule overturned, you have to convince the securities industry that they are wrong and that it is in their best interest to have it scrapped.
It is not much different from the insurance industry deciding there are certain types of risk that they don't want to accept and declining to insure it.
The chances of the industry asking for the rule to be overturned just after it goes into effect as a result of their request are somewhere between zero and none. So deal with it, get on with your life and stop asking government to intervene in every aspect of society that is not to the liking of your particular special interest group. If governments were less prone to respond to the bawling and handwringing of every group that comes down the pike, the world would be a much better place.